ThyssenKrupp (OTCMKTS:TKAMY) versus National Steel (NYSE:SID) Head to Head Survey

ThyssenKrupp (OTCMKTS:TKAMY) and National Steel (NYSE:SID) are both mid-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for ThyssenKrupp and National Steel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ThyssenKrupp	1	1	0	1	2.33
National Steel	2	1	0	0	1.33

National Steel has a consensus target price of $1.30, indicating a potential downside of 16.93%. Given National Steel’s higher possible upside, analysts clearly believe National Steel is more favorable than ThyssenKrupp.

Dividends

ThyssenKrupp pays an annual dividend of $0.10 per share and has a dividend yield of 0.7%. National Steel pays an annual dividend of $0.09 per share and has a dividend yield of 5.8%. ThyssenKrupp pays out -7.0% of its earnings in the form of a dividend. National Steel pays out -31.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. National Steel is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares ThyssenKrupp and National Steel”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ThyssenKrupp	$38.01 billion	0.24	-$1.63 billion	($1.42)	-10.47
National Steel	$44.69 billion	0.05	-$480.53 million	($0.29)	-5.40

National Steel has higher revenue and earnings than ThyssenKrupp. ThyssenKrupp is trading at a lower price-to-earnings ratio than National Steel, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

ThyssenKrupp has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, National Steel has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.

Profitability

This table compares ThyssenKrupp and National Steel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ThyssenKrupp	-2.40%	-7.90%	-2.80%
National Steel	-5.06%	-13.90%	-2.21%

Summary

National Steel beats ThyssenKrupp on 9 of the 14 factors compared between the two stocks.

About ThyssenKrupp

thyssenkrupp AG operates as an industrial and technology company in Germany and internationally. It operates through five segments: Automotive Technology, Decarbon Technologies, Materials Services, Steel Europe, and Marine Systems. The Automotive Technology segment offers components, systems, and automation solutions for vehicle manufacturing, such as axle assembly, body in white, camshafts and electric engine components, dampers, dies, springs and stabilizers, crankshafts and conrods, steering, and undercarriages. The Decarbon Technologies segment provides slewing bearings and rings, green ammonia and methanol, chemical and cement plants, high pressure processing, and refinery services, as well as green hydrogen. The Marine System segment manufactures submarines, naval services, and naval surface vessels. The Material Services segment offers 3D-printing/additive manufacturing, alloys, infrastructure project and services, industrial minerals, logistics services, metals, nonferrous metals, plastics, rolled steel, special ores, and stainless steel. The Steel Europe segment manufactures composite materials, electrical steel, hot strips, organic coated strips and sheet, packaging steel, precision steel strip, and sheet and coated products. thyssenkrupp AG was founded in 1811 and is headquartered in Essen, Germany.

About National Steel

Companhia Siderúrgica Nacional operates as an integrated steel producer in Brazil and Latin America. It operates through five segments: Steel Industry, Mining, Logistics, Energy, and Cement. The company offers flat steel products, such as hot and cold rolled, galvanized, galvalume, pre-painted, and metal sheets products; coil, sheets, and derivatives; tiles and derivatives, pipes, and profiles; long steel products; steel packaging solutions for the food industry; chemical packaging solution; and carbochemical products. It also provides steel cutting services; produces and sells cement; operates railway and port facilities; and generates electric power from its thermoelectric co-generation and hydroelectric power plants. In addition, the company explores for iron ore reserves at Casa de Pedra and Engenho mines located in the city of Congonhas; and limestone and dolomite at the Bocaina mine located in the city of Arcos in the state of Minas Gerais, Brazil, as well as produces tin. Companhia Siderúrgica Nacional was founded in 1941 and is headquartered in São Paulo, Brazil.